Mack-Cali Sells 56-Building Office/Flex Portfolio in NY and CT
The flex space trend continues, but the Jersey City, NJ REIT closing on its $487.5 million sale in Q2 2019 has other plans.
NEW YORK CITY—With Mack-Cali Realty’s sale of its 56-building, 3.1 million-square-foot office/flex portfolio in Westchester County, NY and Fairfield County, CT, the NJ REIT finishes its disposition of properties to focus on waterfront centric property and residential assets. Mack-Cali sold the properties to RMC Acquisition Entity, LLC, an affiliate of the Robert Martin Company, LLC for $487.5 million.
The deal is scheduled to close in the second quarter of 2019. Mack-Cali will use a portion of the proceeds to repay approximately $230 million of unsecured debt.
“The sale of our office/flex portfolio substantially completes our strategic repositioning. Mack-Cali’s evolution to a waterfront centric office and residential landlord is complete,” says Michael DeMarco, the company’s CEO. “Proceeds from the sale of this portfolio will be used in part to pay down debt and to purchase Soho Lofts, a 377-unit apartment community in Jersey City, which furthers our waterfront strategy.”
Last month, Madison International Realty purchased a 5% ownership interest in the real estate investment trust. That company’s CEO Ronald Dickerman reiterated the Mack-Cali strategic plans to focus on prime office and multifamily residential properties on the NJ waterfront.
And in January, Mack-Cali sold its 386,000-square-foot, six-building flex-industrial warehouse property in Elmsford, NY to Realterm Logistics of Annapolis, MD for $70.25 million.